The commercial real estate market continued its recovery well into 2018. We saw an average increase of 13% in office rent with a net absorption of 1.59 million sqft, bringing down the vacancy rate from 6.2% to 5.1%. Co-working operators and technology-driven start-ups continued to drive the demand for office space, especially in the CBD area. With no major additions in the coming years and the next big increase in stock only expected in 2022, rent is set to continue its upward trend.
Let’s take a look at the upcoming stock in Singapore’s CBD.
The recently completed 18 Robinson is a 28-storey mixed-development that provides premium office space across 17 floors. It also offers 7 levels of elegant retail space and 6 levels of mechanical basement carpark. Though the building injected approximately 215.278sqf of commercial space into the market, most of its space was pre-committed at the time of completion.
After a 2 year-development project, Funan is set to re-open as Singapore’s first online-and-offline shopping mall, incorporating an office complex of 270,066 sqft as well as a co-living serviced residence. To date 70% of the retail space and 60% of the office space are pre-committed.
ASB Tower, the former CPF building located at 79 Robinson Road is scheduled for completion in 2020, offering 617,850sqft of office and retail space. Prominently located in the prime CBD area, with panoramic views of the city and southern bay, the building is aiming to be a green development with the Green Mark platinum award from Singapore’s Building and Construction Authority.
At 63 Robinson Road, the Afro-Asia i-Mark looks set for completion in Q2 of 2020, providing approximately 181,996sqf of office and retail space. The development will boast eco-friendly designs and technology from Japan and is also aiming for the Green Mark Platinum and LEED Platinum standards.
The Golden Shoe Car Park redevelopment at 88 Market Street is expected to be ready in the Q1 of 2021. This stunning 51-storey tower will provide a mix of residential apartments, along with 29 floors of premium, Grade A office space totalling 635.00sqf.
Office Tower Central Boulevard will feature high-rise mixed commercial retail units, hotel, office and serviced apartments, over 50 storeys. Construction began in 2018, and once completed, it will provide approximately 1.52 million sqft of office and retail space.
Guoco Midtown on Beach Road should offer a mixture of office, retail and residential. The Grade A office space is expected to be approximately 770.000sqf when completed in 2022. With its full design concept set to be unveiled in the first half of 2019, the development is looking to introduce trend-setting concepts to the Beach road area.
The current lack of commercial stock is making it difficult for tenants to break into the Singapore CBD. So what are the other options?
Park Mall, an integrated retail and office complex along Penang Road, within the vicinity of Orchard Road, is currently under re-development as a Grade A commercial building with two office towers and a retail component on the first floor. Park Mall will add another 352,000sqft of office space when it is completed in Q4 2019. While outside the core CBD area, Park Mall is a well-served by an extensive network of public transport and is a short ride from the CBD.
Paya Lebar Quarter is a progressive city located in the east of Singapore. With three office towers, a premier residence and over 200 retailers and food and beverage outlets, the development offers the best in city living with a fully integrated range of urban spaces. All three office towers have reached completion and are welcoming their first tenants while the retail and residence section is set to be completed in Q4 of 2019.
Located in the suburban area of Woodlands, in the northern part of Singapore, Woods Square integrates an office block, retail and food and beverage space, as well as a childcare centre. Featuring the office loft concept, with floor-to-floor heights of 5m, the units offer more volume as compared to a traditional office unit.
Fortunately, we’re seeing some stock opening up just outside of the CBD which may ease the pressure, not just on availability but also on rent prices. So, if you can’t wait for the upcoming developments, it may be worth casting the net a little further afield.
If you’re in the market for commercial property space in Singapore, you’ll know that low vacancy rates and high demand tip the market in favour of the landlord.This means there’s no better time to get in touch with the team at Tenant CS.
Find out how our experts can help you with your office search and lease negotiation – particularly in this sort of market where professional advice is more vital than ever!